Compound interest

[dafoe1999]

At what point did you see compound interest really start working?

[MDM]

Depends on your definition of "really start working".  See http://forum.mrmoneymustache.com/investor-alley/'every-25-year-old-in-america-should-see-this-chart'/msg487417/#msg487417 for one way to approach this.

[forummm]

In the stock market, it's a bit up and down instead of constant returns. But in some years my money has made me more money than I do from working. That's a pretty fun thing. I project that in a few years the average historical market return would make us more money than my salary.

[Bajadoc]

When my investments made as much in a year as I made working in the same year. That is when the whole compound interest investment thing came together for me.

[Tigerpine]

I can't wait for that day.  I started my first investment in January of this year, and I'm actually down by something like 2.5%.  I suppose it's better to have your expectations tempered early in the process.  Even so, until I can start to see the effects for myself, I just have to be fueled by the success stories and looking at past performance charts.

[forummm]

I can't wait for that day.  I started my first investment in January of this year, and I'm actually down by something like 2.5%.  I suppose it's better to have your expectations tempered early in the process.  Even so, until I can start to see the effects for myself, I just have to be fueled by the success stories and looking at past performance charts.

When you're just starting out you want the market to get lower--you're buying more shares per dollar. The underlying companies are still the same, but you get more of them.

[Tigerpine]

I can't wait for that day.  I started my first investment in January of this year, and I'm actually down by something like 2.5%.  I suppose it's better to have your expectations tempered early in the process.  Even so, until I can start to see the effects for myself, I just have to be fueled by the success stories and looking at past performance charts.

When you're just starting out you want the market to get lower--you're buying more shares per dollar. The underlying companies are still the same, but you get more of them.

Thanks!  I'll try to keep that in mind.  Perception is reality.

[Eric]

From a couple of months ago:
http://forum.mrmoneymustache.com/welcome-to-the-forum/when-did-you-notice-the-compound-interest-snowball/